The e-commerce startup breaks down production costs (labor, materials,
transporting the apparel, and duties) for all of its shoppers to
see. One dress, for instance, is $98 at Everlane, and Everlane
claims traditional retailers would sell a comparable dress for
$190.

This is especially pertinent as consumers get used to to
paying less for apparel on a consistent basis. Look no
further than fast fashion— wherein behemoths like Zara churn
out runway-like looks for less — and the rise of
discount retailers like TJ Maxx.

Macy's is in the process of opening off-price outlets, while
Nordstrom is expanding its Rack concept.

And the idea of transparency in fashion, which is increasingly
important to young shoppers, could also challenge luxury brands
like Coach and Michael Kors.

"64% percent of millennials would rather wear a
socially-conscious brand than a luxury brand," Rachel
Krautkremer, an editorial director for the creative agency
Deep Focus, told Racked. "It's a shift in how this
generation views their clothing. They want to know where their
product is coming from."

A photo posted by Everlane (@everlane) on Oct 10, 2015 at 9:32am PDT on
Oct 10, 2015 at 9:32am PDT

Lower prices offer an additional appeal to cash-strapped
millennials — or anyone watching his or her budget, for
that matter.

"We thought, 'What would it mean to build a Ralph Lauren from
scratch on the web and go straight to the consumer?" Everlane's
CEO Michael Preysman said to Business Insider in 2012. "We're not going to be the
cheapest price, but we won't be the most expensive either.
The clothing will be Barney's quality at one-third the
price."

Honest by prides itself on its transparency. "Honest by
offers products with complete transparency in price and
manufacturing, creating a new paradigm in fashion
and retail," the company writes on its website.

Up-and-coming retailer Oliver Cabell shows off its transparency
in this graphic:

Oliver Cabell is transparent when it comes to
production costs.Oliver
Cabell

Usually, it's a mystery as to how bags became so
expensive.

"We're actually flipping that inside out and saying, 'Hey,
we're going to show you all these things," Oliver Cabell's CEO,
Scott Gabrielson, said to In Forum.

There are some components to this process that make it
easier to facilitate.

"Designing in-house, dealing directly with the
factory; the business model is really structured to be as
value-providing as possible," Gabrielson said to In
Forum.

Everlane doesn't have any brick and mortar stores, which
certainly helps cut costs.

Amazon-and-Costco-esque Jet.com — another company
known for its abnormal level of transparency — is able to sell products
for10-to-15% lower than its competitors
do by opting not to profit off of its sales. The company
strictly makes money from shoppers' $50 annual membership fees.
(The company recently pulled that model and nixed the $50 fee, but
it certainly still remains a transparent company.)

Jet.com has outlined that it operates on principles of
"transparency, trust and fairness."

Further, by revealing production costs, retailers can make
consumers feel closer to them. It's a tactic that can plausibly
help sales.

"If we think about our interpersonal relationships, when
people share things with us—as long as they don’t overshare—we
tend to like them better," Harvard Business School
assistant professor Ryan Buell said to Harvard Business School's
Working Knowledge contributor channel on Forbes. "We find it
interesting that we’re seeing evidence of the same thing in our
relationships with companies."

Ultimately, choosing to share this information with
consumers can make companies more likable.

"Our evidence suggests you should open yourself up and say,
'Here I am, warts and all,"" Harvard Business School assistant
professor Leslie K. John said to Harvard Business School's
Working Knowledge contributor channel on Forbes. "When you
make yourself vulnerable, people like you more